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CHAPTER 7: SEGMENTATION, TARGETING AND POSITIONING (Design a Customer -…

- - - - Overall economic development
      - Population's income levels
    - - Stability of government
      - Monetary regulations
      - Receptivity to foreign firms
      - Bureaucracy
    - - Religions
      - Values & attitudes
      - Common languages
      - Customs
      - Behavioral patterns
  - - - Psychographics
        
        Social class
        
        Lifestyle
        
        Personal characteristics
        
        Based on their opinions, interests, emotions.
      - Geographic
        
        Region of country
        
        Provinces
        
        Country
        
        Cities
        
        World region
        
        Neighborhood
        
        Population size
        
        Based on different geographical units
      - Behavioral
        
        Occasion - based purchased
        
        Benefits sought
        
        User status
        
        Usage rate
        
        Loyalty status
        
        Readiness stage
        
        Attitude toward product
        
        Based on consumers knowledge, attitudes, uses, responses to a product
      - Demographics
        
        Age & Life cycle
        
        Household Income
        
        Ethnic or Cultural group
        
        The most popular bases (closely with consumers wants, needs, usage rates)
    - - Identify better - defined target groups
      - A powerful tool for marketers of all kind
  - - - Should be the largest possible homogenous group pursuing with a tailored marketing program
    - - Effectively searched and reached
    - - Conceptually distinguishable
      - Respond differently to different marketing-mix elements and programs
    - - Certain segmentation variables are difficult to measure
      - The size, purchasing power, profiles can be measured
    - - Designed for attracting & serving the elements
- - - - Micromarketing
        
        Local
        
        To whom live in the same city/ neighborhood/ shop in same store
        
        Effective in the face of pronounced regional and local differences in demographics and lifestyle
        
        Meet the needs of first-line customers
        
        Drive up manufacturing and marketing cost by reducing economies of scale
        
        Create logistics problems
        
        Tailors products and marketing programs to the needs of specific segments (local & individual marketing)
        
        Individual
        
        To individual customers (mass customization)
        
        Make relationship with customer more important than ever
        
        Unlike mass production
      - Undifferentiated Marketing (mass marketing)
        
        Focus on & target what is common in the needs of customers (whole market with 1 offer)
        
        Ignore market segment differences
        
        Trouble competing with more-focused firms (better satisfying the needs of specific segments and niches)
      - Differentiated (Segmented) Marketing
        
        Increase the cost of doing business
        
        Target several market segments & design separate offers for each
        
        Extra marketing research, forecasting, sales analysis, promotion planning, channel management
      - Concentrated (Niched) Marketing
        
        The greater knowledge
        
        Consumer needs in niches it serves
        
        Special reputation it acquires
        
        Goes after a large share of one or a few segments or niches
        
        Effectively
        
        Fine-tune products, prices, programs to the needs of carefully defined segment
        
        Efficiently
        
        Towards consumers can serve best and most profitability
  - - - Affect long-run segment attractiveness
      - Forces
        
        New entrants
        
        Competitors
        
        Substitute products
        
        Relative power of buyers
        
        Power of suppliers
    - - Mesh with company long-run objectives
      - Enter only which segments create superior customer value & gain advantages over competitors
    - - The largest, fastest-growing are not always the most attractiveness to every company
      - Some company may lack of skills and resources needed
      - Unprofitable -> even take steps to encourage that group to shop at the competition
  - - - One version -> Undifferentiated/ Concentrated marketing
      - Mature stage: differentiated marketing
    - - Differentiation & Concentration: products that vary in design
      - Undifferentiated marketing: uniform products (grapefruit or steel)
    - - Competitors use differentiated/ concentrated -> undifferentiated can be suicidal
      - Competitors use undifferentiated -> gain advantage by differentiated/ concentrated
- - - - Multiple differences (Which differences)
        
        Important
        
        The difference delivers a highly valued benefit to targeted customer
        
        Distinctive
        
        Competitors do not offer difference
        
        Company can offer it in more distinctive way
        
        Superior
        
        Communicative
        
        Communicable & visible to buyers
        
        Pre-emptive
        
        Competitors cannot easily copy the differences
        
        Affordable
        
        Profitable
      - One unique selling proposition (USP) - (How many differences to promote)
    - - Understand customer needs better than competitors, then deliver more value
      - Points of differentiation can occur anywhere in the entire customer experience
        
        People
        
        Hire & train better than competitors
        
        Training, culture, morale
        
        Channels
        
        Ex: transactional banks
        
        Coverage, expertise, performance
        
        Services
        
        Speedy, convenient, cautious
        
        Expedient, convenient, cautious
        
        Product
        
        Features, performance, style, design
        
        Consistency, durability, reliability, repairability
        
        Image
        
        Distinctive intangible benefits
  - - - Show consumers perceptions of their brands versus competing products on important buying dimensions
      - Based upon 2 variables (price & quality)